Assemblyman Proposes Legislation to Lower Taxes, Expand Tax Credits

RIVERSIDE - Assemblyman Paul Cook today introduced three bills that would lower taxes until the state economy recovers and provide tax credits for families whose incomes have dropped because of the recession.

''I'm always looking for ways to create more jobs in California,'' said Cook, R-Beaumont. ''Our state leaders need to realize that reducing the tax burden on citizens and small businesses will create thousands of new jobs, help California's economy ... and bring back the stability the state once enjoyed.''

Cook's Assembly Bill 1595 calls for reducing state sales taxes if the unemployment rate remains at or above 8 percent. According to the bill, if the jobless rate holds at that level in the last two quarters of this year, an automatic half-cent cut would go into effect beginning July 1, 2013.

The lower sales tax would remain in effect until the unemployment rate stays below 8 percent for three consecutive quarters.

AB 1596 would expand a program begun in 2009 that offers businesses incentives to hire new employees. According to the proposal, companies with 50 or fewer employees would receive a $3,000 tax credit for every new employee added to the payroll. The original legislation allowed credits for businesses with 20 employees or less.

Cook said there is $360 million remaining from the original program, so it is a good time to put the remaining funds to use.

AB 1597 would make individuals and couples who have sustained 10 percent salary losses over the last two years eligible for a tax credit amounting to one-tenth of the loss, up to a maximum $300 for a single payer and $600 for joint filers.

''It's no coincidence that the California unemployment rate is more than two points higher than the national rate,'' Cook said. ''We need to lower taxes and create tax incentives if we want to get people back to work, and these bills are a good first step.''